Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly what would raise "red flags" at the IRS? Or how to make an IRS audit go as smoothly and painlessly as possible?

If you're in the right type of business, you can get that information, directly from the IRS!

Traditionally, IRS examiners have been responsible for auditing many types of businesses. An examiner might audit a grocery store one week and a construction company the next. A lot of the examiner's time was spent learning about the business.

To improve efficiency, the IRS launched the Market Segment Specialization Program (MSSP). Examiners now focus on specific types of businesses. To help the examiners understand each type of business, the agency has developed training guides, called "Audit Techniques Guides." The guides explain the standard practices for the business, and tell the examiners exactly where to look for potential problems. (For example, auto repair shops sometimes don't report the parts they have in stock as inventory.)

The IRS has developed Audit Techniques Guides for dozens of business types, ranging from pizza shops to major league sports franchises. In addition, there are guides that deal with specific business practices, such as executive compensation, shareholder loans, or stock based compensation.

You can download the guides directly from the IRS website. There are other sites that distribute the ATGs as well, and some of them seem to have guides, perhaps a little out of date, that don't appear on the IRS website. Simply search the web for IRS Audit Techniques Guides to find a list!

Bob Nicholson / WYGK Consulting provides business, technology and strategic consulting for small businesses, internet start-ups and entrepreneurs.

Visit http://www.wygk.com

In The News:

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NBN kills 'Netflix tax' idea and unveils basic unlimited plan  The GuardianProposal put to internet *service* providers earlier this year would have targeted high-volume users of video streaming services.
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Apple initiates legal battle against 13 bn EU tax order  Deccan HeraldApple will launch a legal challenge to a EU order to pay 13 billion euros in Irish back taxes in a landmark case.
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Fairhope, Spanish Fort support 3-mill tax increases for schools  AL.comSupporters for the 3-mill increases in Fairhope and Spanish Fort were celebrating Tuesday night following a special election to raise more money for schools.
Trump again dangles a promise of tax cuts  CNNWashington (CNN) President Donald Trump is reviving last year's promise to slash taxes for America's middle class as he seeks to bolster his reelection bid ...
How to pay income tax online or deposit challan at banks  LivemintYou have filled up your ITR form and then find out that you have to pay a certain amount of income tax that is due. The taxpayer can do it both online and offline.
How to verify Income Tax Return (ITR) via Aadhaar-based OTP  India TodayIn order to verify ITR using the Aadhaar-based one-time password (OTP), the candidate's mobile number should be linked to Aadhaar card and registered in the ...
Amid Slowdown, Cars Get Pricer Due To Road Tax Hike In 9 States  ZigWheels.comPrice hike ranges from Rs 5000 to Rs 57000 (on-road) depending upon the model.
Tough to claim input tax credit for donated goods  Economic TimesGST authorities have, based on the facts of the case, denied ITC claims, especially when the company was not distributing its own products.
Opinion | Common taxpayers suffered this tax filing season due to frequent changes  LivemintNew tax law should ensure that laws and ITR formats are not changed every year.
Urgent need to cut both corporate and income tax: Saugata Bhattacharya, Axis Bank  Economic TimesTax cut is the most effective way of getting out of this slowdown and the sentiment.
States opposing cut in tax rate on auto ahead of GST council meet  India TodayWhile the government is keen to go for a reduction in GST rate cut from 28 per cent to 18 per cent for the auto sector, the move's negative fallout in the form of ...
Illegal tax collectors thwart PAC drive  Nagaland PostA positive impact of the Public Action Committee's (PAC) drive against illegal collections at various check gates on the first day Monday was the drastic drop in ...
ITR processed? Here's how to request intimation notice u/s 143(1)  Economic TimesOnce your income tax return (ITR) is processed, the tax department is required to send you an intimation notice under section 143(1). This tax notice will tell you ...
Tamil Nadu's New EV Policy Seeks Full Road Tax Exemption for Electric Vehicles Until 2022  News18According to the Tamil Nadu Electric Vehicle Policy, all EVs, two, three and four-wheelers, buses and light commercial vehicles, will be given 100 per cent Motor ...
Over 2 crore income tax return filers yet to verify their ITRs. How to do it  LivemintOnly after the verification of ITRs, the income tax department starts processing it.You can verify your ITR offline as well as online.
Gov. says DRS was 'over reaching' on new grocery tax  WFSBThe governor and the Department of Revenue *Service* said they're reviewing a new food tax law.
Oil companies flag roadblocks in rationalising taxes on jet fuel  Economic TimesNEW DELHI: Oil marketing companies have cited issues like sales tax as a barrier to the Civil Aviation Ministry's plan to rationalise additional charges that ...
Income tax benefits you get in sovereign gold bonds: 5 things to know  LivemintSovereign gold bonds are a good option to take exposure to gold as an asset class, say financial planners. After from fetching 2.5% interest, sovereign gold ...
Reporting of foreign assets in income tax return: CBDT issues clarification  Economic TimesCBDT has clarified that only foreign assets acquired as per the relevant accounting period of the foreign country have to be reported while filing ITR for FY ...
Small startups with turnover up to Rs 25Cr to get promised tax holiday: CBDT  YourStoryIn a statement, the CBDT stated that startups will continue to receive the tax holiday as specified in the Section 80-IAC of the Income Tax Act, 1961.
India needs to move towards single corporate tax bracket of 25%: KPMG report  Business TodayKPMG has said that India needs a single corporate tax rate of 25% sans any surcharge or cess above it. The accounting and advisory firm in a report has ...
New income tax rules that impact TDS: All you need to know  Business TodayFrom increased TDS outgo on purchasing immovable property and life insurance maturity proceeds, to two new areas where TDS will now be slapped on, here's ...
Tax on snacks would have 'huge impact' on obesity, say experts  The GuardianA snack tax of 20% on biscuits, cakes and sweets would have “a huge impact” on obesity levels in the UK and be more effective than the current levy on colas ...
How long do I have to keep filing federal tax returns?  NJ.comQ. I moved to Puerto Rico eight years ago. I receive Social Security and a pension from New Jersey. I will be 66 soon. How long do I have to keep filing federal ...
Progressive tax-the-rich push gains momentum | TheHill  The HillThe progressive push to raise taxes on the rich is gaining new momentum.
McLean County Seeks 6% Budget Increase; Taxes Level  WGLT NewsMcLean County Administrator Camille Rodriguez presented a $102.8 million budget proposal on Tuesday that would keep the property tax rate flat and give 1.5.
All tax refunds under new export scheme may be tough, says finance ministry  Times of IndiaIndia Business News: As the government works on an “export package”, the finance ministry has said that it may not be possible for the government to shift all ...

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